March 7 (Bloomberg) -- Taiwan’s dollar dropped to a one-week low as foreign funds cut holdings of local stocks amid
concern Europe’s debt crisis will slow the global recovery.
Government bonds were steady.

International funds sold $100 million more Taiwanese shares
than they bought today, taking net sales for the week to $333
million, according to exchange data. Stock indexes retreated
across Asia ahead of tomorrow’s deadline for creditors to accept
a debt restructuring by Greece.

“The local dollar continues to weaken as there’s some
money leaving Taiwan,” said Tarsicio Tong, a currency trader at
Union Bank of Taiwan in Taipei. “Exporters are looking for
opportunities to buy the Taiwan dollar, so the currency
shouldn’t fall too much.”

The Taiwan dollar slipped 0.1 percent to NT$29.565 against
its U.S. counterpart, according to Taipei Forex Inc. It touched
NT$29.589, the weakest level since Feb. 29.

The yield on the government’s 1.25 percent bonds due March
2022 was little changed at 1.255 percent, prices from Gretai
Securities Market showed.

The overnight money-market rate was little changed at 0.397
percent, according to a weighted average compiled by the Taiwan
Interbank Money Center.